Geometric group profit surges 168% on stronger portfolio

BS 200 SCORECARD

Geometric Software Solutions (GSS) reported 168 per cent surge in its consolidated net profit to Rs 8.30 crore for the third quarter ended December 31, 2006 compared with the corresponding period last year.

Its consolidated net sales shot up 78 per cent to Rs 106.75 crore in the December 2006 quarter.

GSS operates in the engineering services and product lifecycle management segments. During the quarter, Geometric Software Solutions Inc, a wholly owned subsidiary of GSS, bought 95 per cent stake in Modern Engineering Inc for $23.75 million (about Rs 107 crore).

Modern Engineering was consolidated with Geometric effective November 1, 2006.

On a standalone basis, the company reported 42.9 per cent increase in net sales to Rs 45.38 crore over December 2005 quarter and 253.9 per cent surge in net profit to Rs 8.3 crore.

Commenting on the results, CEO and MD Ravi Gopinath said, "We are on track with respect to our plan for the organic business in this financial year. With the consolidation of Modern Engineering, Geometric has a significantly enhanced business portfolio and delivery footprint. As we continue the process of business integration, we will increasingly capitalise on this."

The company, excluding Modern, added 14 new clients in the third quarter.

The business mix has remained the same in comparison with the second quarter. On a y-o-y basis, the product revenue share fell from 18 to 13 per cent and engineering services rose from 6 to 10 per cent.

Offshore revenues as a percentage of total services revenue stayed at 68 per cent. The product revenue accounted for 40 per cent of the total revenues.